A former Global Crossing executive assisting a federal investigation of the company plans to file a wrongful termination action within a week.
Mr Roy Olofson, a former vice president of finance at the high-speed telecommunications network firm, co-operated with the Securities and Exchange Commission (SEC), the FBI and several Congressional investigations into the failed company, his Santa Monica-based lawyer, Mr Brian Lysaght said.
"We had the lawsuit ready to go before the bankruptcy, but we had to procedurally recast it after the bankruptcy filing," Mr Lysaght said.
Global Crossing, which filed for bankruptcy on January 28th in the fourth-largest insolvency in US history, has denied Mr Olofson's allegations that it engaged in improper accounting.
The company said earlier this month the SEC had asked it to turn over documents including a letter that Mr Olofson sent in August that questioned certain business practices.
Mr Olofson initially voiced concerns about the company's financial practices in meetings with Mr Joseph Perrone, executive vice president of finance and former outside auditor with Arthur Andersen & Co., Mr Lysaght said.
The FBI has started a separate investigation into the failed company, which stands accused of having used nearly worthless swap transactions - long-term network capacity lease deals with other telecom companies - to pump up the value of reported revenues.